Thailand’s leading bank SCB has launched cross-border transfers in stablecoins

The project was implemented in partnership with institutional custodian Fireblocks

17.10.2024 - 15:25

129

2 min

What’s new? Thailand’s oldest and one of the largest commercial banks, Siam Commercial Bank, has launched cross-border payment services in stablecoins for its customers. The initiative is in collaboration with institutional crypto custodian Fireblocks and Singapore-based payment company Lightnet.

Material by The Block

What else is known? SCB claims that its product is the first in Thailand’s traditional financial industry to use stablecoins for global settlements. Previously, the project participated in the regulatory sandbox of the central bank, but now it has been fully brought to the market.

SCB explained that the new service improves capital efficiency by eliminating the need for pre-funding between partners, reducing transaction costs, and allowing users to transact in local currencies.

“This solution will provide significant improvements to customers’ experience in cross-border money transfer and will lower transaction time and cost and be accessible on a 24/7 basis. This project also promotes financial inclusion as there is a lower capital requirement per transaction,” said Lightnet CEO Tridbodi Arunanondchai.

Paxos and Stripe have launched a platform for payments in stablecoins

The new product supports USDP, PYUSD, and USDC coins

Earlier this month, Thailand’s Securities and Exchange Commission (SEC) proposed allowing private funds to invest in cryptocurrencies.

In August, Israel-based Fireblocks was licensed by the New York State Department of Financial Services (NYDFS) and also announced the launch of regional cold asset storage units in Thailand, UAE, UK, Singapore, and Australia.

Author: